Uneducated buyers who are Flipping Cars witness prices that simply spiral out of control in the end. To avoid the mess, you need to know what to look for before finalizing a deal at the auto auction.
Inspection and Diagnosis of Repair Costs
Flipping cars would not be a good bargain if you buy a car that requires a lot of repair. You want to put a limit to spending huge dollars on repairs. If you should know how to limit your repair costs for flipping, you should know how to diagnose problems with the prospective car.
You need expert car knowledge to make the best buy, otherwise you might have to go by the word of the seller or hire a mechanic every time you purchase a lot. Do not be afraid to walk away if the seller rushes you through the inspection.
Once you have located a car you want to bid on, read the descriptions for the car provided by the seller. You want to know about the mileage, extra features in the car, and of course the service history and warranty. You should also find out why the seller is selling the car away.
When you put your car for end sale, it should run well, smoothly, and it should feel right. If you are buying, a car that requires a bit of servicing, you should estimate if the buy is flip worthy. Ensure you read the contract and paper work carefully.
Gut instincts mostly speak right. If you think something is not right about a vehicle, just drop the idea of buying it.
Verify Insured Title Checks for
• Salvage reported for total loss due to theft or damage beyond repair
• Car refurbished with new or used parts
• Damage due to fire, flood or other mechanical damage
Verify Problem Checks for
• Frame damage that weakens the structure and look of the vehicle
• Specific part in the vehicle that has been malfunctioning or replaced several times during the warranty period
• Reported salvage without clear indication of the extent of damage
• Vehicle that has been filed for flood insurance claim
Verify Odometer Tampering for
• Probable roll back of odometer by comparing it with service reports of the past.
• Broken odometer that does not document distance driven
• Reported mileage is more than what the odometer can actually document.
Verify Past Usage of the Car for
• Collisions and unreported accidents
• Ownership, probably stolen from actual owner
• Has been used as a cab, fleet, or a police agency
Regardless of what you do, ensure that the car you buy has a market – a prospective buyer.
Some auctions do not permit pre-sale inspection or test driving, specifically in lot purchases. Post sale inspections enable buyers to back out of the sale. Reconditioning to some degree is required for almost all vehicles. It is good if you are perceptive about car repairs and diagnosis if you are in to flipping cars.